Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

July 14, 2020

Building a Successful M&A Strategy

By Achim Neumann

An M&A strategy is a plan which details the corporate development activities of a company or enterprise. It lays out plans for the mergers and acquisitions which benefit you and your business. The M&A strategy typically involves a plan for exiting the business for the optimal value or securing investment for company growth.

For owners of middle-market companies, it is worth being aware of the following typical factors that can play a key role in how and why acquisitions are carried out.

  • Most middle-market executives decide to go through with acquisitions to drive growth by acquiring capabilities, technology, market share and/or talent.
  • Inorganic growth commonly plays a vital role in company growth strategy for the majority of middle-market executives who participate in M&A. The wish to stimulate growth is the principal reason companies engage in M&A.
  • The availability of funds to pursue a constant number of targets typically drives business valuations up. This is especially true in the current business climate where we are seeing a slight increase in the number of deals going through, implying that there is an increased number of players in the game at the moment together with a heightened sense of urgency around deals.
  • Advance can be slow and difficult to measure as a result of unexpected issues in many deals, with most taking 3-6 months to conclude. The preparation period prior to the negotiation phase should ideally be three to five times longer than the deal-making process itself.
  • It is important to seek help with planning, financial reporting, valuation (business appraisal) and execution well in advance of locating a specific target if you want to ensure that you are ready to move when the time comes.

If you own a middle-market business today and you have not thought about your M&A strategy yet, you should seriously consider doing so.

If you desire to exit in the next 9-36 months, it is imperative that you get started today. To make the process as smooth and profitable as possible, you should start a relationship with an M&A advisory firm now.

How can an M&A advisory firm help me?

Very few privately-held businesses can be considered “buyer ready” the moment the owner(s) makes the decision to sell. At A. Neumann & Associates LLC, one of the most important advisory services that we offer is designed to help sellers see their companies through the eyes of buyers in a detailed M&A strategy.

One of the most important documents that we prepare for each client is our Roadmap for Enhancing Value. As a key part of our due diligence checklist, this document allows the business owner to determine the steps he/she needs to take in order to optimize a business’ market valuation.

Not many people who are selling a business realize the importance of having such a roadmap in place until they are well into the due diligence process when the buyer begins to express concerns about issues such as:

  • A lack of middle management
  • Excessive dependence on owner
  • High customer concentration
  • Inadequate accounting / MIS systems
  • Lack of documentation

These are just a small selection of obstacles that an effective M&A strategy will help you navigate in the process of successfully exiting your company.

When the issues above surface at an inopportune stage of negotiations, two things typically occur. First, the valuation of your business is threatened, and second, contingencies such as earn-outs become part of the transaction.

Deals often fall through because sellers have not endeavored to make sure that their businesses are buyer-ready. When this happens, the risk becomes too great for a buyer to proceed with the deal.

Embark on an M&A Strategy today with A. Neumann & Associates, LLC

Hiring an experienced M&A advisory firm like A. Neumann & Associates, LLC is the wisest choice when you are selling your business. We have 50+ years of experience among our professionals and can guide you through the process to help you enhance the salability of your company.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or

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Client Testimonials

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs
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Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

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